As you probably know, passive income is the income you earn without being materially involved with the day-to-day running of a business. However, you have to work hard at first to build the business. With that in mind, here are five online business models to make passive income in this digital era.
According to a recent report by Research and Markets titled the “Global E-Learning Market Analysis & Trends – Industry Forecast to 2025”, the global eLearning market will be worth $325 billion by 2025. Additionally, video content will account for nearly 80% of all Internet content by 2019, says the eLearning Industry. Based on these numbers, online courses are a good way of generating passive income, especially if you have expertise in a particular field. To get a piece of this pie, all you have to do is create online courses in your field of expertise and sell your videos on online course marketplaces such as Udemy, Thinkific and Skillshare. However, if you want greater control over content, you can self-host your courses on your own website using tools such as Teachable, which would allow you to create a professional-looking online school.
An information product is basically a product that provides a detailed answer to a question. This business model is an alternative to the online courses business model. Examples of digital products include instructional videos, podcasts, ebooks, recipes and guides. Information products are particularly useful because consumers are increasingly turning to the Internet for answers. In fact, a 2007 study by PEW found that nearly 60% of Americans get their answers from the Internet. This means there is a growing market for digital information products. Of course, to create a successful information product, you would need to invest a considerable amount of time, effort and resources. Specifically, you would need to build an ecommerce website, create the product and write a sales letter. Additionally, you would have to market your product as well as do search engine optimization in order to attract traffic to your ecommerce website. One of the main advantages of this business model is its huge earning potential.
If you are interested in learning more about this model, you should check out training programs such as Internet Business Mastery and Niche Profit Classroom.
Based on the pay-per-sale business model, affiliate marketing is one of the most popular online business models today. To earn money through this business model, you have to join an affiliate program, which is relatively easy since most retailers, both large and small, have affiliate programs. Moreover, you can also join affiliate networks such as Clickbank and JVZoo. When you join an affiliate program, you become an affiliate with your own special affiliate link, which you will use to the seller’s products/services. As an affiliate, your work is to use your affiliate link to direct traffic to the seller’s online store. In return, you will receive a commission for every successful sale that originates from your affiliate link. To succeed in affiliate marketing, you need to have a strong online presence. This means you should leverage online marketing platforms such as YouTube and social media sites including Twitter, Instagram and Twitter. Additionally, you should have a website/blog and a mailing list.
Affiliate marketing is probably one of the easiest ways to make passive income online. This is because your only job would be to use your affiliate link to direct consumers to the seller’s site. In other words, you would not need to create your own product, invest in infrastructure or deal with customers directly. In fact, you do not even need you own website to become an affiliate. If you are looking for a good affiliate marketing training program, check out Bring The Fresh.
If you own a relatively popular blog or website and want to monetize it with the aim of generating passive income, then you should sign up for the Google Adsense program. Once you sign up to the program, Google will display ads that match your content on your website/blog. When your Internet visitors click on those ads, you will receive 68% of ad value. For instance, if the advertise had paid $1 for the ad, you will 68 cents and Google will keep 32 cents. In essence, Google would be paying you for driving traffic to the advertiser’s site. Google Adsense is a relatively easy and straightforward way to earn passive income, especially if you have a relatively popular website/blog that receives tens of thousands of visitors every month.
If you want to make passive income selling physical goods to consumers but you do not want to hold inventory or even ship the products by yourself, dropshipping is the right business model for you.
As a dropshipper, you would be able to sell goods that you neither manufacture nor stock. In other words, your job would be to forward clients’ order to suppliers who would supply the goods to the consumer directly. However, the supplier may include your details on the packaging in case you want to hide the identity of the real supplier.
We are living the Information Era. The Internet has created an incredible world of opportunities to build businesses based on information or innovative ways to sell physical products. Never before the world has seen so many young people becoming millionaires, and they are doing it through internet-based systems.
Take the time to learn and build some business online so you don’t miss out on this exciting times.